# 2023-107 Pay and Benefits, Canadian Armed Forces Relocation Directive, Real Estate and Legal Fees

Case summary

F&R Date: 2025-01-14

The grievor contended that when he sourced a realtor through the Third Party Service Provider program he was unaware that the maximum permitted real estate commission rate for Ontario was 3.5%. He maintained that the real estate agent did not respect this rate and had him sign an agreement with a 5% real estate commission fee. The grievor claimed that when he learned that the realtor had exceeded the capped rate, the realtor stated that 5% was his standard rate for “full service”. The grievor asserted that the Director Compensation and Benefits Administration's decision to deny reimbursement for the amount the grievor paid over the 3.5% capped rate was based on false information from the realtor that the grievor had agreed to pay 5% for full service. The grievor maintained that the realtor had not provided any other option aside from the “full service” option.

The Initial Authority (IA) denied the grievance as she found that the grievor was correctly reimbursed in accordance with the Canadian Armed Forces Relocation Directive (CAFRD). The IA noted that she could not grant reimbursement of any amount in excess of the pre-negotiated rates as she does not have the authority to depart from the Treasury Board-approved policy.

The Committee found that the grievor was not entitled to reimbursement of any real estate fees above the pre-negotiated rate of 3.5%. The Committee cited article 2.2.07 of the CAFRD which states that members are responsible for understanding their relocation benefits and seeking clarification if necessary. Further, the Committee cited article 8.2.09 of the CAFRD which sets out that the Canadian Armed Forces is not authorized to reimburse members any amount in excess of the pre-negotiated rate. As such, the Committee found that the grievor was not aggrieved, and recommended that the Final Authority not afford the grievor redress.